Bitcoin Tumbles To $5k Handle But "By No Means A Funeral For Crypto"

Crytpocurrencies have taken another ugly leg lower overnight - on no new news-driven catalyst - extending the losses from Japan's FSA crackdown and sending Bitcoin back below $6,000 for the first time since Feb 6th.

This is the lowest intraday print for Bitcoin since Nov 2017 (breaking the lows of 2018)...

But Bitcoin is actually the best performer since Japan's FSA headlines while Bitcoin Cash and Litecoin are down 20% since Friday morning...

But while it is clear that many are throwing in the towel on the crypto space, CoinTelegraph's Helen Partz reports that the current bear market is not a funeral for Bitcoin “whatsoever,” CEO of BKCM LLC investment firm Brian Kelly said on CNBC's Fast Money segment June 22.

To back up his statement, Kelly provided three key factors.

First, he pointed out that the market sentiment is “approaching lows,” implying that a trend reversal is likely to follow.

Kelly called attention to the fact that Bitcoin is still trading at the same level as back in November 2017, whereas a year ago its value was 60 percent lower - around $2,500.

Next, Kelly mentioned the recent news that Japan’s Financial Services Agency has sent out business improvement orders to 6 domestic exchanges. He pointed out that while in the short run it’s going to be “a little tough,” in the long run it will help make the exchanges more “robust.”

Third, Kelly brought up the announcement by Mt. Gox to reimburse its customers and begin civil rehabilitation proceedings, following the $473 million hack in late 2013 and the resulting bankruptcy. Mt. Gox was considered to be the largest hack in the history of crypto, until this year’s $534 million Coincheck hack.

On June 5, Cointelegraph reported that Bitcoin has been declared “dead” for the 300th time, according to the 99Bitcoins “obituary list.” By press time, the cryptocurrency has “died” 315 times, with 69 “deaths” taking place this year alone.

image courtesy of CoinTelegraph

Additionally, CoinTelegraph  notes that Charles Hoskinson, co-founder of altcoin Cardano (ADA), tweeted June 20 that the entry of Wall Street into the crypto sector will bring in “tens of trillions of dollars:”

Cardano, which is currently ranked 8th on Coinmarketcap, has a market cap of around $3.5 billion. Charles Hoskinson was also one of the founding members of Ethereum (ETH), crypto startup Invictus Innovations, and crypto tech company IOHK.

When asked by a commentator what exactly the crypto community is building, Hoskinson answered “an entirely new world:”

The intersection of cryptocurrency and Wall Street has been welcomed by those who also see a potential influx in capital. In mid-May, cryptocurrency wallet and exchange Coinbase released a new suite of products designed to attract institutional investors by relieving security and regulatory compliance concerns. Speaking about the product release, the VP of Coinbase referred to “$10 billion” of Wall Street money that now had the potential to enter the market.

The “trillion” value has also been bandied around before, as Dan Morehead, CEO of $1 billion crypto hedge fund Pantera Capital said in April that a $40 trillion crypto market is possible, in part due to Wall Street’s increasing interest in clearing crypto trades.

Finally we note that while Bitcoin is down 70% from its record highs in Dec 2017, it is still up 136% YoY...

 

 

 

 

 

 

 

Comments

Cryptopithicus Homme Mementoil Sun, 06/24/2018 - 12:08 Permalink

Zerobrains still not picking up crypto after ten years, which is like an eternity it technology.  A lot of your great garanparents didn't believe powered flight was "real" either well into the 1920s... decades after Kitty Hawk.  Slow learning is in your genetic code.  The same code that prevents you from knowing it's not some badge of honour to be proud of.

In reply to by Mementoil

Exponere Mendaces Bay of Pigs Sun, 06/24/2018 - 20:38 Permalink

Oh look, here come the idiots in the media with Bitcoin is "dead" articles and one-liner soundbites.

This happens every time in the cycle.

Every. Single. Fucking. Time.

If anything, I get more amped up -- because it means we're a short distance away from the real fun, some basing action, then the inevitable upside breakout as the new exponential rally takes us to highs BEYOND the historical ones.

Naturally, every troll and no-coiner idiot is throwing shit -- because they have no idea what the fuck is coming.

 

In reply to by Bay of Pigs

lookslikecraptome Davidduke2000 Sun, 06/24/2018 - 15:51 Permalink

It is always interesting to me that coin people see their process as any different than any other exchange or index process. 

The CPPT, Crypto PPT showed up a bit ago and drove the price up on a single, as in ONE, one minute bar at 12 pm pst. https://www.gdax.com/trade/BTC-USD

That is not the regular gang of traders. That is one dude trying to keep profits in order and HOPING they can stabilize a sell off. No problems it happens in all indices and markets. Just do not say that crypto is any different than any other financial index. 

Where crypto is different in the amount of hacks that occur almost weekly https://howmuch.net/articles/biggest-crypto-hacks-scams. Does not look good for mass adoption. There is much I value about the block chain. Just not the crypto evangelists like dick eater john and coin telegraph. 

In reply to by Davidduke2000

zebra77a Cryptopithicus Homme Sun, 06/24/2018 - 12:30 Permalink

Blockchain Bitcoin is completely different than exchange transaction bitcoin which is a fake token layer all exchanges had to create to facilitate instant transactions. The exchanges only need keep a small reserve of real bitcoin and a small reserve of cash for withdrawls.. Just like the federal reserve.. As for their artificial trading tokens on their database they have a slight advantage of being able to create as much of it as they desire. As people find out when their withdrawl and sell orders are always blocked until the token is down allowing exchanges to skim their client pools. All the analysts who think they are doing chart analysis are only looking at a simulator which is programmed to move against the client pool..

Just like offshore forex has been doing for 20 years..

Just like wolf of wall street bucket shops have been doing for 30..

Just like the aluminum siding salesmen who may have ripped off your grandparents many moon ago..

THhe fraud cycle is maturing on the crypto..

In reply to by Cryptopithicus Homme

lookslikecraptome zebra77a Sun, 06/24/2018 - 12:36 Permalink

fyi, crpto homo is the most immature troll I have ever seen here. I have quit reading or responding to him. Have fun talking to the retard.

Snow has an interesting take on reality as well. EG, he saw great positive news for crypto over the last week.

crypto homo prides himself on sitting through 80% correction cause he is in it for the long run.   from 1950 to 6100.  Let that profit just fade away. 

In reply to by zebra77a

snblitz zebra77a Sun, 06/24/2018 - 16:06 Permalink

It is good to point out that bitcoin exchanges are not bitcoin.  However for 99.9999% of "bitcoin users" the exchange **is** bitcoin.  (I have transacted directly on the bitcoin blockchain as a miner and as a user)

Lately, I have been worrying about this:

Imagine someday that a new crypto coin comes along named ‘NewCoin’ that does everything exactly right:  It is secure, it is easy to use, it is safe, it is fast, it scales, everyone loves everything about it.

When everyone starts using ‘NewCoin’ because it is so much better, what will bitcoin be worth?

Do you see the gamble that is inherent in crypto as a whole?  If the crypto coin you have put your wealth into falls out of favor you lose everything.  There are thousands of crypto coins.  Which are going to maintain their value?

One of the problems with arguing against bitcoin (I am a miner from 2012) is that is it generally defined by the pro-bitcoin people by what it is going to be rather than what it is.  Though often their claims of what it is are either false or made out of ignorance.

I try to focus on what it is:

  • irreversible public ledger - no
  • stable currency - no
  • decentralized - no (and suffers from the 51% problem)
  • cheap - sometimes
  • fast - no (60 minutes for transaction confirmation)
  • scaleable - no (7.5 transaction per second max or 20 with segwit)
  • eliminates third parties - no
  • exchanges - risky and costly (though not entirely bitcoin's fault)

Sure there are all sorts of "changes" coming that are going to make it the next great thing.  But as yet it is not a great thing.

https://www.finitespaces.com/2018/01/01/what-is-bitcoin-and-the-other-crypto-currencies/

In reply to by zebra77a

Mementoil Cryptopithicus Homme Sun, 06/24/2018 - 12:32 Permalink

I have seen what happened to all those who adopt each and every technology the moment it comes out: They get to enjoy great products such as the Betamax and great stocks such as pets.com. They spend a fortune on buying an iphone 6, then an iphone 7, then an iphoneX, though they are almost identical in respect to the value they deliver, and they own an automated spy in their house called Alexa.

Yes, I take pride in not adopting every fad that comes along and waiting for stuff to prove themselves first. I say - let others serve as the Guinea pigs.

In reply to by Cryptopithicus Homme

snblitz Caymaniac Sun, 06/24/2018 - 16:15 Permalink

Federal Reserve Notes (FRNs) are a currency.  It would be foolish to use them as a store of value.

I am told the US savings rate is near historic lows.  Does this not imply that the people are smart enough to avoid FRNs as a store of value?

https://www.finitespaces.com/2018/05/05/why-stocks-housing-and-gold-are-not-really-investments/ but are a great place to keep your wealth.

In reply to by Caymaniac

jaxville Cryptopithicus Homme Sun, 06/24/2018 - 14:22 Permalink

  I can see the value of cryptos.  It is the price that is totally ridiculous. 

  Still haven't bought any but that might change as it is getting harder to give dough to my favorite nationalist organizations.

  BTW ....My investments are doing just fine without having the risk of participating in a speculative bubble.

In reply to by Cryptopithicus Homme

83_vf_1100_c Stackers Sun, 06/24/2018 - 14:41 Permalink

  Cute, but no. I am very tech savvy. I typed it on my Commodore/Wang, uploaded it over my 56k baud modem to a DEC server after finding the correct web address using Geocities search engine. Point being just because it is new does not mean a particular iteration will survive. I can allow that digital money will one day rule the mainstream economy when the .gov can 100% control it.

  I am impressed that it has held on this long. Early adopters hanging on no doubt. Less to lose vs the hope it will recover to it's glory days. Literally days.

In reply to by Stackers

CogitoMan Cryptopithicus Homme Sun, 06/24/2018 - 13:30 Permalink

Yep, if dollar goes to zero my gold goes to infinity. But you shitcoin "investors" will get stuck somewhere at the bottom.

Shitcoin is bought by naïve newcomers who think they know better. The only potential buyer of shitcoin will be another shitcoin collector that will be already busted when shit hits the fan.

On another hand gold is bought mostly by old timers and governments that have REAL wealth and means to  preserve it. Also, I doubt shitcoin will ever become "reserve asset" for governments whereas gold is and its status will only grow with the increase of political/economic turmoil.

Let me make it even more clear.

Average US shitcoin collector "owns" about 0.8 shit   err bitcoin, 15k credit card debt and 250 thousand home equity loan to pay. Additionally some have 50-80k student loan to take care of.

And job that pays 30-40k a year ....

Now, this tells me about their potential "purchasing power" when economy crashes.

It will be big fuking ZERO! This is why shitcoin will attain the same value.

That's a fact shitcoiners!

In reply to by Cryptopithicus Homme

Cryptopithicus Homme CogitoMan Sun, 06/24/2018 - 13:46 Permalink

The only "fact" is that you people are too stupid to know what is "real".  You were trying to talk about "corporeal" but your limited cognitive abilities are not capable of nuance.  Code is real.  Software is real.  Bitcoin is real.  Technology is real.  You are going to be left really far behind in the past.  Which is where you people really belong.

In reply to by CogitoMan

CogitoMan Cryptopithicus Homme Sun, 06/24/2018 - 14:04 Permalink

For most of the people real will be only things that physically exist like commodities, land and real estate when crash comes. Yes, there are esoteric things like code, software block chain and the likes. But try to go during crash time and exchange block chain crap for dozen of eggs with the farmer. Good luck with that.

P.S. I am software engineer by education. So don't stipulate that I have "limited cognitive abilities" because you see things differently.

P.P.S. I have some Tulip bulbs to sell... not cheap though. But I swear they will go to infinity in price (when dollar goes to zero lol). Anyway I can assure you that they will keep their value better that your shitcoins when crash comes. At a minimum you still can eat them.  You can't eat shitcoin though :(

In reply to by Cryptopithicus Homme

CogitoMan Cryptopithicus Homme Sun, 06/24/2018 - 17:59 Permalink

We are taking about esoteric IDEA here called shitcoin here. Makes me wonder why you have come with stuff like RAM ,ROM,SSD. Why did you not mention 5 1/5 " floppy discs or introduce AI topic here? It has about the same (ir)relevance to what we discuss here.. Guess you attempt to "show your basic computer knowledge" ha ha. Nah, that does not impress me at all  lol.

Anyway, I doubt you can exchange any of those and foremost your "REAL" shitcoins with farmer for chicken when hard time comes. Every farmer would prefer gold or silver for obvious reason. Because he could EASILY exchange those with anyone for anything he would desire. He can't do the same with your IMAGINARY shitcoin. Like it or not THIS IS THE WAY HE WOULD THINK ABOUT THEM! Most of the farmers would not have any idea how to use it and worse, there is no REAL market for it. Even today you can't buy a simple thing like cup of coffee with your shitcoin in seven-eleven store. This is what you don't get here because of your severely limited cognitive abilities.

In reply to by Cryptopithicus Homme